Good day, ladies and gentlemen, and welcome to the Daktronics Fiscal Year 2022 Fourth Quarter Earnings Results Conference Call. As a reminder, this conference call is being recorded today, Wednesday, June 8, 2022 and is available on the company's website at www.daktronics.com. I will now turn today's conference over to Ms. Sheila Anderson, Chief Financial Officer of Daktronics, for some introductory remarks. Please go ahead, Sheila.

Thank you, Valerie. Good morning, everyone. Thank you for participating in our fourth quarter and year-end earnings conference call. I would like to review our disclosure cautioning investors and participants that in addition to statements of historical facts, we will be discussing forward-looking statements reflecting our expectations and plans about our future financial performance and future business opportunities. All forward-looking statements involve risks and uncertainties, which may be out of our control and may cause actual results to differ materially. Such risks include changes in economic conditions, changes in the competitive and market landscape, including impacts of global trade discussions and policies; the impact of governmental laws, regulations and orders, including those resulting from pandemics; disruptions to our business caused by geopolitical events, military actions, work stoppages, natural disasters or international health emergencies such as the COVID-19 pandemic; management of growth, timing and magnitude of future contracts; fluctuations in margins, availability of raw materials, components and shipping services, the introductions of new products and technology and other important risk factors as noted in our -- and detailed in our 10-K and our 10-Q SEC filings. With that, I will move into some financial comments. Last year at this time, lockdowns were ending and people were -- had begun gathering, renewing our customers' confidence in their business outlook. Our order volume rebounded from the pandemic year lows and to an all-time record of $846 million for the year and $286 million for the fourth quarter. Part of that record was attributed to being selected for the dynamic video system provider for the LA Clippers and Real Madrid Soccer Club stadiums. Customers also placed their orders earlier than we have previously experienced for future deliveries to secure our manufacturing capacity. Each business unit orders volume grew through fiscal 2022 due to the…

Thank you, Sheila. Good morning, everyone. Customers continue to choose Daktronics for our industry-leading value as noted by our record order volume. We appreciate our customers' support and thank all of you for your business. While orders have recovered, the supply chain has not. It has been a difficult year as we have experienced unprecedented headwinds in the availability of material, labor and transport. These factors created inflationary pressures in our cost structure. Supply chain disruptions began to emerge as a result of the pandemic and changes in global demand. Specifically, we are impacted by the global shortages of semiconductors and related electronic components, other materials needed for production, shipping container shortages and freight availability. These factors injected a level of inefficiency in our organization this past year. To combat these headwinds and support timely deliveries, we have increased our investment in inventories, adjusted delivery expectations, redesigned product lines for other available materials and increased capacity through automated manufacturing machinery. We expect dynamic and volatile supply chain and labor conditions to persist at least through the calendar year so we continue to work to maximize productivity while balancing constraints. As the environment evolves, we plan to adjust and adapt our pricing and production schedules to best serve our customers. We responded to inflationary pressures by increasing pricing and implementing additional pricing controls. Pricing increases have been an infrequent activity over the past 54 years of Daktronics' history. Normally, electronic components and processing improve in pricing and efficiency and prices tend to fall over time. However, this past year, we have seen historic price increases across the varying parts and commodities we use as well as have experienced inflationary pressure and personnel costs. We continue to monitor our supply chains and marketplaces and adapt our pricing methodologies accordingly. We expect the…

[Operator Instructions] Our first question comes from Robert Shapiro of Senior Research. Your line is open.

Hey. So, last quarter you mentioned that due to supply chain issues and labor conditions that you plan to adjust pricing and production schedules to improve the situation. Obviously, you mentioned it again this quarter. Is there a lag? Or is there a stickiness to prices that make it difficult to -- like you said, you mentioned it last quarter. So just wondering if there's a lag.

There is a lag. As we go to increased prices, we have quotes that are active and valid that are out there. So it takes some time for the -- for a price increase to be seen in our backlog and our sales and revenue in a period. And also it continues to be a volatile and dynamic situation. So we are continuing to deal with part shortages and personnel costs as everything -- as the future unfolds.

Okay. So this past quarter, gross margin increased slightly to '18 -- compared to the history. Should we assume it's going to improve slightly again this quarter? Or what do you think? Do you think that's going to happen to the gross margin numbers?

Yes. Predicting the future is always a tricky business, especially in volatile times. But we believe that our -- the processes and systems and the actions we’ve taken will continue to grow gross margin over time.

Okay. Thank you.

Thank you. [Operator Instructions] Thank you. I’m showing no further questions at this time. I'd like to turn the call back over to Reece Kurtenbach for any closing remarks.

Well, I'd like to thank everyone for attending today's conference call. As a reminder, we host conference calls two times per year, and our next one will be at the conclusion of our second quarter in November of this year. I hope everybody has a great summer, and we will talk to you again in the fall. Thank you. Bye, bye.

Thank you. Ladies and gentlemen, this does conclude today's conference. Thank you all for participating. You may now disconnect. Have a great day.